More older people choose to
keep working
By ANDY SMITH
The Providence Journal

August 05, 2008
Tuesday

The number of older workers in the work force age 65 and higher
has been rising since 1977, and the trend is expected to accelerate
at least through 2016. The federal Bureau of Labor Statistics
examines the issue in the "spotlight on statistics"
feature found on its Web site, www.bls.gov/spotlight.

Since 1977, employment of workers
65 and over increased 101 percent, compared with 59 percent for
all workers 16 and over. The increase was more pronounced among
women (147 percent) than men (75 percent). According to the bureau,
this trend does not simply reflect the aging of the baby boom
generation, since as of last year the leading edge of the baby
boomers -- born between 1946 and 1964 -- had not yet turned 65.
That's coming in 2011.

The trend is expected to continue.
From 2006 to 2016, the overall labor force is projected to increase
by 8.5 percent. When analyzed by age categories, the increase
is heavily weighted to the grayer part of the population -- a
36.5-percent increase among workers 55 to 64, an 83.4-percent
increase for workers 65 to 74, and an 84.3-percent increase among
workers 75 and older.

The latter figure needs to
be taken with a grain of salt. Although the percentage increase
is dramatic, the actual number of workers over 75 remains quite
small, only 0.8 percent of those employed last year.

Marcie Pitt-Catsouphes, director
of the Center of Aging and Work at Boston College, said there
are two sets of reasons to explain the increase in older workers.

When it comes to money, she
said, many people simply have not saved enough to retire at 62
or 65, particularly when retirement stretches out for 20 years
and more. With the current inflationary pressures on expenses
such as food and gas, that's more true now than ever . She also
pointed out that many people at retirement age are facing additional
financial pressures to care for dependent relatives at both ends
of the spectrum -- aging parents and college-age children.

Pitt-Catsouphes said there
are essentially three sources for income after 65: Social Security,
retirement savings plans and earned income. The easiest one to
increase is income, which means continuing to work.

Financial uncertainty in retirement
has been increased by a widespread change in retirement plans,
from defined benefit plans, in which companies promise a specified
amount in retirement benefits, to defined contribution plans,
in which companies promise to contribute a certain amount, but
make no guarantees of the payout.

The Bureau of Labor Statistics
has a chart that shows the percentage of workers covered by defined
benefit plans dropping from 32 percent in 1992-1993 to 20 percent
last year. "For more and more workers, this means that risk
-- in terms of steady retirement income -- has been transferred
from the employer to eventual retiree," the BLS said on
its Web site.

Pitt-Catsouphes said a second
set of reasons to explain why older people remain in the work
force is a different set of attitudes about both age and work.
Many people are feeling relatively fit and healthy in their 60s
and 70s, and don't see any physical reason to retire. And, for
many, work is an important part of their identity. "They
don't feel as though they are done yet," Pitt-Catsouphes
said.

This doesn't necessarily mean
that older workers want to remain in the same jobs. The idea
of "encore careers," in which older workers look for
different work, often in the nonprofit sector, is a relatively
new idea that has been gaining ground.

The Bureau of Labor statistics
also found that more workers over 65 are working full time. That
represents a turnaround over the past 30 years. From 1977 to
1990, the ratio remained relatively stable, with about 49 percent
of older workers working full time, and 51 percent working part
time. That gap widened considerably in the early 90's, until
by 1995 around 44 percent were working full time and 56 were
working part time.

Then the trends abruptly reversed
themselves, and last year the Bureau of Labor Statistics found
only 44 percent of the older workforce was working part time
and 56 percent were working full time.